Work Space for Learning How to Research Stocks
12-21-2016
, 06:20 PM
First day of Winter - ho ho nooo ... Not so cold out today, but there's still tons of snow everywhere, so that's always kind of blah ... guess it can only go up from here
Still trying to get to Silver Star, so will probably play some more today while the Calendar's got a zoom promo. Sometimes the tables tighten up around 9pm or 10pm, after the after-dinner crowd has filled their puzzle card, so will maybe have time to keep reading more stuff then?
Or ....may just take a rest on the couch, will see
Okay, going to play for a bit, then take a break for din
Last edited by TrustySam; 08-28-2017 at 07:46 PM.
12-22-2016
, 12:56 AM
Learning Corner: Possible Warning Signs of a Rough Patch to Follow?
Have tried to pick stocks that will hopefully do okay for years. But guess since my investments will be in tax free accounts, selling will be an option as well (without having to worry about tax)?
Haven't found too many companies that grow exponentially year after year without things eventually cooling off for them - like Starbucks ... and possibly Apple? So was wondering ...
QUESTION: Are there sometimes maybe signs that a hot stock is starting to cool off a bit?
In the last thread, there were those 5 red flags that Sears was showing:
Maybe an early warning sign that a company may have hit a bumpy road is that a couple of those 5 things may still look fine, while a couple of them are starting to look not quite as solid?
Have taken a look at a couple of companies, but may need to look at several more to see what sorts of things may start to look different *before* the share prices might start taking a turn? As with poker, maybe things won't always be so clear?
So here's the first company ...
Example: Domino's (DPZ)
This article was saying that the reason Domino's share price went down last year was because they missed earnings. And that the only reason their share price went back up is because they did an accounting trick of borrowing money to buy back shares:
In #2,3 it shows that they used the borrowed money to buy back shares - guess companies like to buy back shares because it decreases the number of shares on the market ... and that will increase the Earnings Per Share (EPS), when there's fewer shares? But guess stuff like increasing earnings, share buybacks, and paying out dividends are *supposed* be the result of a company that's prospering, not the result of a company that's borrowing money to get the numbers to look like that's the case?
This other article was also saying that strange accounting is oftentimes the first sign that a company might have started to stumble.
LESSON: So with Domino's here:
Have tried to pick stocks that will hopefully do okay for years. But guess since my investments will be in tax free accounts, selling will be an option as well (without having to worry about tax)?
Haven't found too many companies that grow exponentially year after year without things eventually cooling off for them - like Starbucks ... and possibly Apple? So was wondering ...
QUESTION: Are there sometimes maybe signs that a hot stock is starting to cool off a bit?
In the last thread, there were those 5 red flags that Sears was showing:
1. Decreasing share price
2. Decreasing (or negative) earnings
3. Increasing debt
4. Debt that's very large
5. Increasing interest from short-sellers
Maybe an early warning sign that a company may have hit a bumpy road is that a couple of those 5 things may still look fine, while a couple of them are starting to look not quite as solid?
Have taken a look at a couple of companies, but may need to look at several more to see what sorts of things may start to look different *before* the share prices might start taking a turn? As with poker, maybe things won't always be so clear?
So here's the first company ...
Example: Domino's (DPZ)
1. Share price - still increasing, not declining (declining would be bad)
2,3. Earnings still look fine, but Domino's debt level has increased (so the first is okay, but the second is not really great)
4. Apparently their debt level is starting to look a little on the high side too (not good)
5. Increased short-seller interest, decreased insider interest (not great)
This article was saying that the reason Domino's share price went down last year was because they missed earnings. And that the only reason their share price went back up is because they did an accounting trick of borrowing money to buy back shares:
Marketwatch: Why Domino’s Pizza stock may be poised for a fall (May 18, 2016)
In #2,3 it shows that they used the borrowed money to buy back shares - guess companies like to buy back shares because it decreases the number of shares on the market ... and that will increase the Earnings Per Share (EPS), when there's fewer shares? But guess stuff like increasing earnings, share buybacks, and paying out dividends are *supposed* be the result of a company that's prospering, not the result of a company that's borrowing money to get the numbers to look like that's the case?
This other article was also saying that strange accounting is oftentimes the first sign that a company might have started to stumble.
The Economic Times - 7 ways to figure out problems in a company's financial health
LESSON: So with Domino's here:
1. Doing a google search for why Domino's shares were struggling in 2015 led to that helpful article which explained the accounting trick.The article was a report on somebody else's analysis - but the analyst thinks it's possible Domino's might actually *decrease* next year! So guess maybe it'll be interesting to watch and see what happens to DPZ next year as well?
2. And so it sounds like their increasing debt and higher debt levels may indeed be an early warning sign of a rockier road ahead?
Last edited by TrustySam; 08-28-2017 at 07:47 PM.
My head wasn't feeling so great after trying to get closer to Silver Star today ... now my head feels like scrambled eggs, yikes ...
12-22-2016
, 06:33 PM
My packages have arrived from Amazon - that 2 day shipping is the nuts ... now have plenty of time to do some nice wrapping and make every package look special
Will try to get some of that done tonight - and may post some more stuff later too, will see ...
Last edited by TrustySam; 08-28-2017 at 07:48 PM.
12-22-2016
, 10:43 PM
Anybody recognize this?
It's that hand-crack flashlight/phone-charger/radio that was looking like the neatest invention ever a couple of months ago, after my power went out for a *whole 8 hours*, and my phone battery died too lol ...
Quote:
Looks like my power's back after being out all day - am still traumatized from the lack of internet tho lol .. 
Am close to having enough points to get another Amazon Gift Certificate at the PS Rewards Store - can't wait to use it to pick up one of these hand-crank flashlight/radio/phone chargers!
Used my Starscoin to get an external hard drive (via Amazon) a couple of years ago, to do backups to those notes.xml and user.ini files, and that's been nice to have - have never had to worry about losing settings again It seems like having an emergency power source might wind up being another item that might wind up feeling like money well spent, even if it doesn't get used too often?
Am close to having enough points to get another Amazon Gift Certificate at the PS Rewards Store - can't wait to use it to pick up one of these hand-crank flashlight/radio/phone chargers!
Used my Starscoin to get an external hard drive (via Amazon) a couple of years ago, to do backups to those notes.xml and user.ini files, and that's been nice to have - have never had to worry about losing settings again
It seems like having an emergency power source might wind up being another item that might wind up feeling like money well spent, even if it doesn't get used too often?
Got a bunch of these to give out as stocking-stuffers ... and got one for me as well
Wrapping the other stuff next ...
Last edited by TrustySam; 08-28-2017 at 11:07 PM.
12-23-2016
, 01:09 AM
Article Corner
Since there's several things besides the health of a company that can affect share price, have still been checking out realclearmarkets.com every day, and have started watching CNBC as well. Although there seems to be a lot of time fillers on that channel when there's not much going on?
Today they were reporting that Trump has announced that he might impose a 5% tariff on imports, and this is what happened to the share prices of some of the big-name stores:
CNBC was saying Trump's tax cuts won't likely be enough to offset the tariff, so even ULTA dropped 2% today.
Not sure if may have to go back to the drawing board and consider different picks?
Since there's several things besides the health of a company that can affect share price, have still been checking out realclearmarkets.com every day, and have started watching CNBC as well. Although there seems to be a lot of time fillers on that channel when there's not much going on?
Today they were reporting that Trump has announced that he might impose a 5% tariff on imports, and this is what happened to the share prices of some of the big-name stores:
Wal-Mart, Target, Macy's Drop Amid Tariff Talk
Quote:
Shares of retail behemoth Wal-Mart closed down 2.3% at 69.59 on the stock market today, diving below their 50- and 200-day averages. Target sank 4.4%, Macy's lost 3.6% and Nordstrom plunged 5.8%. Amazon dipped 0.55%. Fresh signs of weak in-store traffic didn't help.
But apparel chains, which rely heavily on cheap imports, were hit especially hard. Gap (GPS) tumbled 5.35%, Abercrombie & Fitch (ANF) 6.3% and American Eagle Outfitters (AEO) 6.3%.
Trump has already threatened to impose a 35% tariff on companies that move production outside the U.S. and import goods back in, hitting shares of carmakers like Ford (F) and General Motors (GM) that have factories in Mexico.
But apparel chains, which rely heavily on cheap imports, were hit especially hard. Gap (GPS) tumbled 5.35%, Abercrombie & Fitch (ANF) 6.3% and American Eagle Outfitters (AEO) 6.3%.
Trump has already threatened to impose a 35% tariff on companies that move production outside the U.S. and import goods back in, hitting shares of carmakers like Ford (F) and General Motors (GM) that have factories in Mexico.
CNBC was saying Trump's tax cuts won't likely be enough to offset the tariff, so even ULTA dropped 2% today.
Not sure if may have to go back to the drawing board and consider different picks?
12-23-2016
, 02:35 PM
Almost turkey day!
Have posted this vid before in my old thread, but the awesome dance moves make it extra-festive, and hopefully worthy of a double post ...
Am no break until the New Year - wish poker was still playable, but oh well ... lots of other fun stuff to do over the holidays
Meeting up with a friend for coffee and a gift exchange this afternoon - hope everybody's having a nice day!
Last edited by TrustySam; 08-28-2017 at 11:09 PM.
12-24-2016
, 07:19 PM
Happy Holidays!
Christmas Eve for us is usually a quiet day spent with the family watching holiday specials on tv, and prepping for the whirlwind of activity that's about to hit the next couple of days
All my aunts and uncles and cousins are coming over for dinner tomorrow - we feast, watch movies, and play board games ... still haven't watched that $5 movie from Walmart so that may be in play, will see lol ...
After helping my Mom out in the kitchen tonight, may check out the sales online - the stores only closed an hour or two ago, and it looks like Boxing Day's *already* getting started?
Hope everybody has a wonderful holidays!
Last edited by TrustySam; 08-28-2017 at 07:55 PM.
12-26-2016
, 02:48 AM
We wound up watching Beauty and the Beast on tv - and then i wound up watching some of it again on the West Coast channel ... sooo good!
Anybody actually going to the mall tomorrow? Could swear some of the prices don't change much from what they were yesterday ... except maybe for holiday wrap. So may duck out to try and stock up for next year.
Also, my nephews arrive tomorrow!
We've saved some of the presents for opening until tomorrow - although there's never usually too much surprise about what we're getting because we all trade lists ... cat slippers, yes!
Night everybody
Last edited by TrustySam; 08-28-2017 at 07:57 PM.
12-26-2016
, 08:15 PM
Turns out one of my nephews got sick overnight, so they won't be coming for another couple of days. So wound up going to the mall after all ... along with the rest of humanity ...
So hot in the mall!
Guess will have time to go back to looking at more stuff - will do that in a bit
So hot in the mall!
Guess will have time to go back to looking at more stuff - will do that in a bit
Last edited by TrustySam; 08-28-2017 at 07:57 PM.
12-26-2016
, 10:57 PM
Selling High
Guess if we're trying to buy low and sell high, then as soon as new shares have been bought, will maybe want to:
Not sure when will be the ideal time to sell after that - maybe before the share price starts to take a turn? Although maybe it won't be so clear when things might be about to take a turn, or if a company's possibly just hit a temporary bump in the road?
Analyst Recommendations
Guess any time there's uncertainty, opinions can very? On the one hand, there was that Domino's article recommending selling (http://www.marketwatch.com/story/why...all-2016-05-18) because:
And there's more analyst stuff on this page on nasdaq.com, where analysts are also collectively predicting the price of Domino's stock might go down slightly next year ...
It's interesting to see the range of price estimates though - because it looks like someone still thinks they might do really well next year and that there's a chance DPZ could rise all the way up to $195? While someone else thinks it could go as low as $132?
Have been trying to read through annual reports, and look at financial reporting on my own to see if that might help - not so sure it helped as much as being able to see what the analysts were recommending though?
PLAN: It's nice to have Domino's as a test case - will be able to watch this stock and see how the analysts do in predicting how things might go for them in the coming year. Hopefully they're predictions will be fairly accurate, and then will be able to rely on analyst predictions in the future?
Guess if we're trying to buy low and sell high, then as soon as new shares have been bought, will maybe want to:
1. Try and keep track to make sure everything's going as hoped,
2. And keep on the lookout for signs that things might be starting to take a turn?
Not sure when will be the ideal time to sell after that - maybe before the share price starts to take a turn? Although maybe it won't be so clear when things might be about to take a turn, or if a company's possibly just hit a temporary bump in the road?
Analyst Recommendations
Guess any time there's uncertainty, opinions can very? On the one hand, there was that Domino's article recommending selling (http://www.marketwatch.com/story/why...all-2016-05-18) because:
1. their earnings were starting to fall short of analyst estimates
2. they started to borrow money to pump up estimates using accounting tricks
And there's more analyst stuff on this page on nasdaq.com, where analysts are also collectively predicting the price of Domino's stock might go down slightly next year ...
It's interesting to see the range of price estimates though - because it looks like someone still thinks they might do really well next year and that there's a chance DPZ could rise all the way up to $195? While someone else thinks it could go as low as $132?
Have been trying to read through annual reports, and look at financial reporting on my own to see if that might help - not so sure it helped as much as being able to see what the analysts were recommending though?
PLAN: It's nice to have Domino's as a test case - will be able to watch this stock and see how the analysts do in predicting how things might go for them in the coming year. Hopefully they're predictions will be fairly accurate, and then will be able to rely on analyst predictions in the future?
Last edited by TrustySam; 08-28-2017 at 07:57 PM.
12-27-2016
, 01:05 AM
Considering One More Stock: Facebook (FB)
Hadn't spent too much time looking at Facebook because they haven't done super well this year - but just noticed that the analysts on nasdaq.com are expecting FB to go as high as $157 next year:
On the other hand, there was this article explaining why there was the big price drop in October, even before Trump got elected - which doesn't sounds as encouraging:
While another article says people may be overreacting and that now may be a good time to pick up shares that might be undervalued: http://fortune.com/2016/11/03/facebook-stock/
Wonder if those estimates are reliable - wouldn't that be something if their share price were to really rise that high? Will have to keep reading to see what other people see in Facebook's future?
Hadn't spent too much time looking at Facebook because they haven't done super well this year - but just noticed that the analysts on nasdaq.com are expecting FB to go as high as $157 next year:
On the other hand, there was this article explaining why there was the big price drop in October, even before Trump got elected - which doesn't sounds as encouraging:
Quote:
Here's Why Facebook (FB) Stock Is Down Today
Facebook fell in after-hours trading because the company noted that, although ad revenues will continue to grow, they will face tougher year-over-year comparisons in the coming quarters. Facebook also noted that ad load, which has been a leading factor driving ad revenues, won’t be a big factor after mid-2017. The company said ad revenue rates will “come down meaningfully” as a result.
Facebook also has bold plans to become much more than a social media company, and its report detailed plans to increase investments significantly in 2017. The company plans to go on a hiring spree in the spring, and it also wants to start building more data centers, which could cut into near-term earnings. Fundamentally, Facebook remains relatively sound. However, the company sees somewhat of a plateau in the near future, and that’s enough to have investors worrying a bit. Not even Zuckerberg and friends can continue to grow at shocking rates forever.
Facebook fell in after-hours trading because the company noted that, although ad revenues will continue to grow, they will face tougher year-over-year comparisons in the coming quarters. Facebook also noted that ad load, which has been a leading factor driving ad revenues, won’t be a big factor after mid-2017. The company said ad revenue rates will “come down meaningfully” as a result.
Facebook also has bold plans to become much more than a social media company, and its report detailed plans to increase investments significantly in 2017. The company plans to go on a hiring spree in the spring, and it also wants to start building more data centers, which could cut into near-term earnings. Fundamentally, Facebook remains relatively sound. However, the company sees somewhat of a plateau in the near future, and that’s enough to have investors worrying a bit. Not even Zuckerberg and friends can continue to grow at shocking rates forever.
While another article says people may be overreacting and that now may be a good time to pick up shares that might be undervalued: http://fortune.com/2016/11/03/facebook-stock/
Wonder if those estimates are reliable - wouldn't that be something if their share price were to really rise that high? Will have to keep reading to see what other people see in Facebook's future?
Last edited by TrustySam; 08-28-2017 at 07:57 PM.
12-27-2016
, 01:45 AM
Here's the Fortune article that was more positive about Facebook's drop in price in October - maybe more reliable because it relies on a group of analysts, and isn't just one person's opinion?
This person did a nice analysis of all the analysis
There was also these quotes from an analyst on Reuters:
The analysts sound pretty confident that Facebook should do just fine - will be so sad if it winds up really doing well next year, and miss out on the big gain
Guess if it's solid, maybe it wouldn't hurt to wait a year for them to develop new revenue streams?
http://fortune.com/2016/11/03/facebook-stock/
Quote:Why Facebook’s Stock Drop Makes It a Better Buy
The social network may have forecast slowing revenue growth and higher investments next year, but it remains a strong long-term bet, according to an overwhelming majority of brokerages.
By "slower" Facebook means less than the 56% growth the company managed in the third quarter.
Analysts also noted that Facebook's comments on "ad load" and heavy investment in talent and data centers were not new and that there was nothing to suggest that the company's spectacular run was coming to an end.
Ad loads are the number of ads that can be displayed to customers without alienating them. The issue is particularly important for Facebook since 90% of its users access the social network through mobile devices.
This person did a nice analysis of all the analysis
http://www.profitconfidential.com/st...plit-fb-stock/
Quote:This Is What’s Causing One Analyst to Warn Against Facebook Stock
Facebook Inc (NASDAQ:FB) and FB stock investors face what may be a crossroads, as some analysts remain bullish on the stock while one analyst predicts a fall by as much as 30%. FB stock has had a solid 2016, gaining 13% year-to-date.
FB stock recently fell 5.5%, despite an excellent Q3 report, mainly due to the belief that ad sales, which were a large part of the of the 56% revenue growth over the same period last year, were going to slow in the next quarter. This came after Facebook CFO David Wehner said as much during a conference call, believing that Facebook has reached its ad limit per page, and will explore other avenues of revenue.
Some analysts see this as the beginning of a steep drop for FB stock.
[However], of 49 brokerages covering Facebook stock, 45 have given it a “buy” or higher rating. Several analysts have also noted that Facebook’s warning about slowing ad load revenue was nothing new, and that Wehner has pointed this out in previous quarterly reports.
While there seems to be more analysts on the bullish side versus the bearish, at the same time, the risk of a 30% decline might be enough to keep some investors away.
There was also these quotes from an analyst on Reuters:
http://www.reuters.com/article/us-fa...-idUSKBN12Y1YW
Quote:Drop in Facebook's stock makes for good time to connect: analysts
Piper Jaffray analyst Gene Munster, who reiterated his "overweight" rating, said Facebook was making the right investments, "which should pay off in spades during 2018+."
"There are several consumer and ad innovations that should keep advertiser demand high (for Facebook)," said Canaccord Genuity analyst Michael Graham.
"We believe Facebook's operating momentum, high growth and reasonable valuation continue to suggest it should be a core tech holding."
The analysts sound pretty confident that Facebook should do just fine - will be so sad if it winds up really doing well next year, and miss out on the big gain
Guess if it's solid, maybe it wouldn't hurt to wait a year for them to develop new revenue streams?
Last edited by TrustySam; 12-27-2016 at 01:52 AM.
12-27-2016
, 02:50 PM
Hey, viper!
Wasn't sure anybody was still reading - haven't been making as much progress as your Index Funds probably have But guess everybody has to start somewhere ...
Thanks so much for the well-wishes - hope you're having a very wonderful holidays as well!
Happy Holidays viper!! Cheers!!
Wasn't sure anybody was still reading - haven't been making as much progress as your Index Funds probably have
But guess everybody has to start somewhere ...Thanks so much for the well-wishes - hope you're having a very wonderful holidays as well!
Happy Holidays viper!! Cheers!!
Last edited by TrustySam; 08-28-2017 at 07:58 PM.
12-27-2016
, 07:08 PM
Since my nephews aren't arriving until tomorrow, actually had time to return one of their gifts and get a better one for cheaper
Which meant spending part of my day waiting in another line, zzz - guess it was also a chance to check out all the other gifts people were returning though ... looks like the chocolate fondue fountain, and the foot-tall talking stormtrooper weren't huge hits
There also seemed to be lots of couch potato type gifts - a mini-fridge, tv trays, a foot massager, a space heater ... guess everyone in Canada must do the same thing at night: sit around in our jammies and watch mediocre tv ...
Wonder what's on tonight lol
Which meant spending part of my day waiting in another line, zzz - guess it was also a chance to check out all the other gifts people were returning though ... looks like the chocolate fondue fountain, and the foot-tall talking stormtrooper weren't huge hits
There also seemed to be lots of couch potato type gifts - a mini-fridge, tv trays, a foot massager, a space heater ... guess everyone in Canada must do the same thing at night: sit around in our jammies and watch mediocre tv ...
Wonder what's on tonight lol
12-27-2016
, 10:45 PM
More Facebook (FB) Stuff
Looking at their share price gains, year by year, it looks like Facebook has been slowing down for a while?
Although, went to double-check the price to see if it was in line with earnings at gurufocus.com - and it seems to be showing that the share should be doing better than it is ... closer to the red dot?
So it looks like it's pretty underpriced like Google. Guess some of it might be the Trump anti-bubble that seemed to hit a lot of tech stocks after the election - and then maybe the rest is people worried about Facebook's growth slowing down in the future?
Although the analysts seem to think people are overreacting.
CONCLUSION: Maybe FB is a more risky stock - with the potential to grow more in the short-term next year, but also the potential to not grow as much as it *should*, due to the uncertainty of what lies ahead for them in the long-term future?
Looking at their share price gains, year by year, it looks like Facebook has been slowing down for a while?
Although, went to double-check the price to see if it was in line with earnings at gurufocus.com - and it seems to be showing that the share should be doing better than it is ... closer to the red dot?
So it looks like it's pretty underpriced like Google. Guess some of it might be the Trump anti-bubble that seemed to hit a lot of tech stocks after the election - and then maybe the rest is people worried about Facebook's growth slowing down in the future?
Although the analysts seem to think people are overreacting.
CONCLUSION: Maybe FB is a more risky stock - with the potential to grow more in the short-term next year, but also the potential to not grow as much as it *should*, due to the uncertainty of what lies ahead for them in the long-term future?
Last edited by TrustySam; 08-28-2017 at 07:59 PM.
12-27-2016
, 11:00 PM
Can't wait to pick up some shares, and for those tax cuts to get passed by Congress - have tried to pick stocks that in the very least won't decline in price ... and will hopefully increase!
Hopefully the stock market does really well next year, and we all do well as well
Hopefully the stock market does really well next year, and we all do well as well
Last edited by TrustySam; 08-28-2017 at 07:59 PM.
12-28-2016
, 02:11 AM
Have still been checking Yahoo Finance for articles every day, but it seems like everything's been pretty quiet because of the holidays?
So couldn't come up with anything else to look at right now - guess will take a break from looking at stock stuff for the rest of the week and just enjoy my nephews' visit, and hopefully things'll start picking up again in the New Year?
Night everybody
So couldn't come up with anything else to look at right now - guess will take a break from looking at stock stuff for the rest of the week and just enjoy my nephews' visit, and hopefully things'll start picking up again in the New Year?
Night everybody
Last edited by TrustySam; 08-28-2017 at 07:59 PM.
12-28-2016
, 03:24 PM
12-28-2016
, 04:55 PM
Hey SA!
Was looking at that a while ago - guess did they develop some sort of gaming computer that learns, or something like that? What a year they've had - wow! Looks like many of your picks have done super well
Mine not so much
Have seen the WYNN stock on several peoples' lists for 2017, and DB seems to be on fire - really hope lots of stocks do well in 2017 the way people are expecting ... maybe we can all retire by the end of next year
Cheers SA!
Was looking at that a while ago - guess did they develop some sort of gaming computer that learns, or something like that? What a year they've had - wow! Looks like many of your picks have done super well
Mine not so much
Have seen the WYNN stock on several peoples' lists for 2017, and DB seems to be on fire - really hope lots of stocks do well in 2017 the way people are expecting ... maybe we can all retire by the end of next year
Cheers SA!
Last edited by TrustySam; 08-28-2017 at 08:00 PM.
12-28-2016
, 06:14 PM
Portfolio Update
All the experts say it's futile to try and time the market, and that they never manage to buy at the absolute bottom and sell at the absolute top. So just went ahead and bought the stuff for next year today, in case things wind up going up in the new year, instead of down ...
Here are my final purchases! Decided to buy Amazon and ULTA because am hoping they will grow over the long-term. And am buying Google and Facebook because they seem (?) underpriced?
Can't remember why the Facebook wound up separate from the other three lol
since it's all in tax free accounts - so can sell it in 6 months if it seems like things might be cooling off for them then?
It feels so helpful to have had the experience of doing something with money where there's rises and falls, and a short-term and long-term - so hopefully things won't feel too different from poker, and will be able to stay focused on potential earnings in the long-term and not the share price in the short-term, like the masters recommend?
Guess will keep reading Yahoo Finance stuff as well - so will see how things go
All the experts say it's futile to try and time the market, and that they never manage to buy at the absolute bottom and sell at the absolute top. So just went ahead and bought the stuff for next year today, in case things wind up going up in the new year, instead of down ...
Here are my final purchases! Decided to buy Amazon and ULTA because am hoping they will grow over the long-term. And am buying Google and Facebook because they seem (?) underpriced?
Can't remember why the Facebook wound up separate from the other three lol
since it's all in tax free accounts - so can sell it in 6 months if it seems like things might be cooling off for them then?It feels so helpful to have had the experience of doing something with money where there's rises and falls, and a short-term and long-term - so hopefully things won't feel too different from poker, and will be able to stay focused on potential earnings in the long-term and not the share price in the short-term, like the masters recommend?
Quote:
More Big Picture Ideas from the Masters, That Show the Similarities Between Investing and Poker
Got to the part in my book Stock Market Investing that lists some of the teachings of some of the investors who have become known for beating the market over the long-term. So there was a section on Warren Buffett, and also:
Some repeat themes were:
1. No One Wants to Invest in the Market When it's Going the Wrong Way
The experts were saying that it's not at all natural to want to buy low and sell high - like with poker, guess most of us want to buy (play more) when on a heater, and sell (stop playing) when in a downswing. Who here would be excited to buy into the market at the end of 2008?
LESSON: So that's apparently the big challenge of investing - is being willing to move in when there's bargains to be had, when you really feel more like sticking on the sidelines?
2. Buying Low, When the Lows are Really Low
Benjamin Graham was saying that the things he uses to help him stay motivated are:
Got to the part in my book Stock Market Investing that lists some of the teachings of some of the investors who have become known for beating the market over the long-term. So there was a section on Warren Buffett, and also:
Benjamin Graham
Phillip Fisher
Peter Lynch
William O'Neil
Bill Miller
Some repeat themes were:
1. No One Wants to Invest in the Market When it's Going the Wrong Way
The experts were saying that it's not at all natural to want to buy low and sell high - like with poker, guess most of us want to buy (play more) when on a heater, and sell (stop playing) when in a downswing. Who here would be excited to buy into the market at the end of 2008?
(Graph of the Dow for 2001-2008)
LESSON: So that's apparently the big challenge of investing - is being willing to move in when there's bargains to be had, when you really feel more like sticking on the sidelines?
2. Buying Low, When the Lows are Really Low
Benjamin Graham was saying that the things he uses to help him stay motivated are:
a) Reminding himself that he's sticking with quality - and that quality companies are always rewarded in the long-term.
b) Stick with value measures
The experts confirmed that the market's not necessarily 'efficient' in the short-term, and there's definitely bubbles and dips due to people getting overly optimistic or pessimistic - so that's were the extra value can be found, profiting from others' mistakes?
Guess normally stock prices should be rising at about the same rate as profits are rising?
Guess will keep reading Yahoo Finance stuff as well - so will see how things go
Last edited by TrustySam; 08-28-2017 at 11:10 PM.
01-01-2017
, 03:02 PM
My nephews are watching football and eating egg muffin sandwiches - they're like little mini-me versions of my brother ... genetics are something
They go home in an hour or two though, but it's been nice to see them 
Anybody have any new resolutions for 2017 - this is about all that caught my eye for this year
Also, it'd be lovely if this turns out to be true
With poker winding down, hopefully 2017 will turn out to be a year of exploration and fresh discoveries, of lots of fun and exciting new interests and activities. GL to us all!
Last edited by TrustySam; 08-28-2017 at 08:01 PM.